Promoting Exports through Improving Quality: Handicraft Testing Lab

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in brief  |  December 2013  |  2

Facilitation Process The need to set up such testing facility was put forth in the Nepal Business Forum’s Industrial Investment Promotion Working Group meeting dated on 4 October 2010. The Ministry of Commerce and Supplies responded to this issue with its commitment to making space available, though a temporary arrangement, in the premises of Nepal Bureau of Standards and Metrology (a government entity). At the same time, the government of Nepal also requested the private sector for their contribution in purchasing the testing machine and under the Public-Private Partnership concept, the government of Nepal and Federation of Handicraft Association of Nepal agreed to contribute 50 percent of the machine cost. Similarly, a further meeting held on 12 January, 2012 formed a committee with representation from the Ministry of Commerce and Supplies, Ministry of

Industry, Nepal Bureau of Standards and Metrology, Federation of Handicraft Association of Nepal and Nepal Gold and Silver Association to develop the operating guidelines for the testing lab. Federation of Handicraft Association of Nepal, Nepal Bureau of Standards and Metrology and Trade and Export Promotion Centre further signed a Memorandum of Association on 20 February, 2012. Currently in its first phase, the lab started testing gold and silver jewelry for cadmium and issuing certificates for these products and very recently, the services of the laboratory are being used by jewelry manufacturers and artisans. Also in a bid to diversify its services, the lab has provided testing for samples collected during the joint surveillance conducted by the government bodies and testing of toxic metal content in plastic toys.

Benefits of the lab Though the machine has been in operation since January 2012, the initial months were spent in carrying out various trial runs and training the manpower dedicated for the system. During the initial period various tests were also carried out to promote the use of this technology amongst the silver traders. In recent times, FHAN has been creating awareness amongst its members about the existence of the lab and the technology. It has been working with a goal to increase the awareness and promotion in the initial 1-2 years and operate on trial basis whereby they would be in a position to understand the challenges and opportunities of operating a testing lab. With this initiative the following have been the key benefits: l Reduced damage: The new testing methods have significantly reduced damage for customers. As opposed to the harmful methods, the testing service is being provided through Energy Dispersive X-ray Spectrometer machine which is safe in nature. l

Increase in Efficiency: The newly installed machine has a capacity of testing 70-75 samples a day and has added to the efficiency of testing methods and reduced delays in issuing certification for tested products as it produces results within two hours. Earlier it took about 24 hours to 48 hours to receive the test results.

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“Handicraft

Accreditation and certification: NBSM has introduced the National Accreditation Scheme to accredit testing labs. Although the laboratory has not yet been internationally accredited, the lab results have served as some sort of certification and added to the accreditation factor for many exporters. However, since NBSM lacks international accreditations, recognition of the accredited labs in the international market might be compromised. Therefore, there is need for a few policy interventions from the government in order to facilitate the market. These are:

- Establish minimum standards that need to be adhered to regarding export items that leave the country. This will help increase the business of the lab and assure the quality of exports. - For the domestic market, schemes such as Hallmarking can be introduced for gold products to increase domestic consumer protection.

Testing Lab has played a pivotal role in minimizing the use of hazardous metals in silver products for export. Realizing the importance of quality testing, private jewelry manufacturers have also an introduced testing facility at their premises and this is a very good sign for maintaining quality.” Mr. Hem Ratna Shakya, President, Federation of Handicraft Association of Nepal

- As is the international practice, an autonomous accrediting body needs to be established which will obtain international accreditation. This body will then accredit laboratories in Nepal. This will help assure acceptance of tests conducted in Nepal. - Guidelines and procedures for testing need to be introduced to standardize the process. l

Figure 1: Left to Right: Destructive technology and the newly installed non destructive testing machine at the NBSM.

Increased confidence among exporters: Though accreditation is still an important next step to ensure the certification is internationally accepted and recognized, exporter confidence has been boosted.


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